What shoppers want: 3- and 4-bedroom homes under $500K
If you’ve been scrolling through new-home listings lately, you’re not alone — and your preferences likely match what most Americans are looking for.
The latest Homebuyer Outlook from NewHomeSource parent company Zonda, which tracks search activity across NewHomeSource.com, reveals that buyers nationwide are zeroing in on three- and four-bedroom homes priced below $500,000.
According to the report, the median price of homes searched in September 2025 was $519,000, with the $400,000–$500,000 range capturing nearly 20% of all activity. Searches for single-family homes continue to dominate, accounting for about three-quarters of all interest. At the same time, the remaining quarter reflects a growing curiosity about townhomes and condos — a shift driven by affordability pressures in many markets.
A Sweet Spot in Size and Price
Buyers are also adjusting expectations when it comes to square footage. The typical home searched on NewHomeSource measured around 2,300 square feet for detached homes and 1,770 square feet for attached ones — slightly smaller than what shoppers were targeting earlier this year. Economists say this signals that homebuyers are being strategic, seeking livable space without stretching their budgets.
“People are still focused on functionality — they just want value for their money,” says Zonda Chief Economist Ali Wolf. “We’re seeing buyers prioritize the right floor plan over the biggest possible house.”
Finding the Right Fit in Your Market
While these national numbers paint a broad picture, the Homebuyer Outlook also reveals local nuances. In Texas, for instance, buyers in Austin and Dallas are searching for homes around the $400,000 mark, while those in Charlotte, North Carolina, and Greenville, South Carolina, are focusing on even lower prices, often under $350,000.
If your target price range feels crowded, consider nearby suburbs or builders offering flexible incentives, such as rate buydowns or move-in-ready inventory.
At the same time, buyers shouldn’t feel pressured to settle. With affordability challenges still shaping the market, more builders are responding by introducing smaller, more energy-efficient floor plans designed to meet evolving demand.
“Home shoppers have gotten more practical,” Wolf adds. “They know what they want — and right now, that’s a comfortable home that fits their life and their budget.”
This story was produced by NewHomeSource and reviewed and distributed by Stacker.
